This situation happened yesterday when I was playing a game vs dwarfs.
My cavalry were caught in a trap and were combo charged by two dwarvern units. After casualty removal the stands looked like this;
D-D-D
D D
D D
D C D
D-D-D
D = Dwarf stand, C = Cav stand. Cavalry are facing towards left of diagram.
I was forced to retreat 1 cm from combat, as I had two dwarf Infantry stands to the front and to my left hand side, I chose to retreat from the left hand side.
So I ended up here
D-D-D
D D
D C D
D D
D-D-D
I was 1 cm away from all units except for the unit in front. As I had sufficient room to retreat along the line of retreat, I thought I had escaped for another turn. However the rules seemed to indicate that you had to be 1 cm away from all enemy stands, not just the pursuers. Is this correct?